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Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

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6 months ago

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bike shop
Bike Shop: Image Pixa Bay

For the nation’s bicycle stores, the last several years have certainly felt like the business version of the Tour de France, with innumerable twists and turns testing their stamina.

Early in the pandemic, a surge in interest in cycling drove sales up 64% to $5.4 billion in 2020, according to Circana, the retail tracking firm. It wasn’t uncommon for some stores to sell 100 or more bikes in a few days.

The boom did not last. Due to pandemic-related supply chain challenges, the retailers sold out of bikes and struggled to replenish. Inventory has caught up, but fewer people require new bicycles. Bicycle manufacturers have started lowering prices to clear off excess inventory. It all adds up to a challenging climate for retailers, with a few bright areas such as dirt and e-bikes.

“The industry had a hard time keeping up with demand for a couple of years, but then demand slowed as the lockdowns ended, and a lot of inventory started showing up,” said Stephen Frothingham, editor-in-chief of Bicycle Retailer & Industry News. “So now for the last, a year and a half, the industry has struggled with having too much inventory, at the supplier level, at the factory level, at the distributor level, at the retail level.”

Circana reports that bike sales will reach $4.1 billion in 2023, up 23% from 2019 but down 24% from 2020. The recovery from the epidemic has been uneven, with large businesses such as REI and Scheels recovering faster than independent bike shops, according to Matt Tucker, director of client development for Circana’s sports equipment business.

bike

Bike Shop: Image Pixa Bay

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

John McDonell, owner of Market Street Cycles on San Francisco’s famed Market Street, says the pandemic’s shift to hybrid labor has been especially difficult for business. During the summer, 3,000 bikes would pass by his shop each day. With fewer individuals commuting to work, that number has dropped to less than 1,000.

According to Pacer.ai, which tracks people’s activities based on smartphone usage, San Francisco falls behind all other major cities regarding workers returning to work, with office visits down 49% from April 2019.

“Our downtown is still a wasteland,” McDonell explained.

Independent bike stores now compete not only with national chains but also with bike manufacturers such as Specialized and Trek. These companies have been buying bike shops and selling their bikes directly to customers, thus eliminating the middleman. According to Frothingham, there are now over 1,000 bike shops in the country that are either owned by Trek or Specialized.

“They’ve got the money to absorb the fact that bike stores, you know, are not a super profitable thing, and in the process, they’ve also been able to cut us out of it,” McDonell stated.

McDonell has been obliged to use a skeleton team of himself and another employee, down from five earlier. His desire to sell his shop to a younger bike enthusiast when he retires is diminishing. He might close his store when his lease expires in a few years.

bike

Bike Shop: Image Pixa Bay

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

“Now I am just trying to land it with both engines on fire and trying not to lose money on my way out,” he stated

Douglas Emerson’s bike business, University Bicycles, in Boulder, Colorado, is doing better, thanks to its placement in one of the country’s most popular biking destinations. He’s owned the shop for 39 years and employs 30 people.

University Bicycles, like other bike retailers, experienced a surge in bike sales due to the pandemic. Emerson recalls selling 107 bicycles in 48 hours. However, immediately following the boom, sales fell considerably due to a lack of inventory, and rentals declined because no one was traveling.

“It became a struggle right after the boom,” Emerson explained. “Since then, manufacturers have overproduced.” In addition, they have significantly reduced prices, which benefits consumers. However, tiny retailers generally cannot take advantage of those discounts.”

Emerson claims the shop hit a “saturation point” when everyone who wanted a bike purchased one. He now sells these consumer items such as jackets, helmets, and locks. His store has returned to its 2019 sales figures.

University Bicycles has also benefited from some of the changes in purchasing trends. The continued strong demand for e-bikes and the increased need for children’s bikes have contributed. Gravel bikes, which can be ridden on both paved and dirt routes, are displacing road cycles as a top seller.

John Ruger, a 50-year biker and faithful University Bicycles client, hasn’t purchased a bike in ten years but intends to buy a gravel bike at present costs. He says a top gravel bike he’s interested in, which would normally cost $12,000 to $14,000, is presently on sale for $8,000.

bike

Bike Shop: Image Pixa Bay

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

“The timing is good,” he remarked. “I can get a bike now because they’re less expensive and my bikes are getting old.”

Shawna Williams, the owner of Free Range Cycles in Seattle, Washington, did not see the same sales boom as others because her 700-square-foot business was so small that she only accepted customers by appointment from March 2020 to May 2021.

However, Williams did have to deal with the coming shortages. She spent a great deal of time “checking in with other shops to see if we could buy something, even at retail, from them, just in order to get a repair done or a build done.”

She expanded her service offerings, such as repairs and maintenance, to compensate for decreasing bike sales. Despite the epidemic, the maneuvering allowed her to maintain consistent overall sales.

“Bike sales, the way that I have kind of framed the shop, are an awesome bonus, but we really need to be sustaining the shop through repair and, like, thoughtful accessory sales,” Williams stated. “A bike sale to me, if we do things well, that means creating a customer for life.”

SOURCE – (AP)

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Trudeau Accelerates Bond Selloff Over Mass Spending Fears

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2 days ago

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2024-11-23

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Trudeau, Bond Market
Trudeau accelerated a bond selloff due to expectations of faster growth and a deeper deficit

Prime Minister Justin Trudeau has accelerated bond selloffs, citing fears of a larger deficit over his GST giveaway. Investors were concerned he was returning to his free-spending strategy as an election loom.

On Thursday, Trudeau unveiled a C$6.3 billion ($4.5 billion) tax relief and rebate program. It includes a two-month moratorium on federal sales tax on various commodities such as Christmas trees, wine, toys, and books and a C$250 check for almost 19 million Canadians, or over half of the population.

The declaration looked to mark the end of a brief period of fiscal restraint, as Finance Minister Chrystia Freeland committed to contain budget deficits to prevent stoking inflationary pressures.

Now that inflation has returned to the Bank of Canada’s 2% target, policymakers have reduced the benchmark interest rate by 125 basis points since June.

Trudeau’s Liberal government sees an opportunity to dig deeper into the public purse, but some analysts believe investors are keeping a careful eye on the country’s debt.

Bonds continued to fall on Thursday following the announcement, as the 10-year benchmark yield rose 7 basis points to 3.457%. After retail data showed a rise in consumer spending on Friday, it increased by up to 3.488%.

As the Trudeau government considers additional fiscal spending, concerns about Canada’s financial situation persist.

Budget Shortfall

Freeland has yet to publish final spending and income figures for the fiscal year that ended in October. Parliamentary Budget Officer Yves Giroux predicts a deficit of C$46.8 billion, much exceeding Freeland’s self-imposed aim of a C$40 billion shortfall.

Despite promises to reduce deficits, the Trudeau government continues to increase expenditure. This year’s budget includes a new capital gains tax inclusion rate to balance the cost of new housing and social initiatives.

This sparked anger from investors and entrepreneurs but allowed Freeland to present a consistent deficit despite significant spending.

The recent declaration indicates that Trudeau’s government no longer feels restrained in its capacity to use economic stimulus to restore favor.

Pierre Poilievre’s Conservatives have led most surveys by roughly 20 points for over a year. They have pounded the prime minister on affordability and promised to reduce taxes, especially income taxes. An election is expected in late October 2025.

The sales tax break will run from December 14 to February 15. The left-wing New Democratic Party intends to support it but has stated that it will continue to advocate for its permanent implementation and expansion to include additional items.

Let the Bankers Worry

Following Trudeau’s announcement, traders in overnight swap markets reduced their bets that the Bank of Canada will drop interest rates by 50 basis points for the second time in December, lowering the odds to fewer than 25% by the end of Thursday. As of late Friday morning, the odds were less than 17%.

The announcement also encouraged several experts to improve their short-term projections for Canada’s GDP. Analysts at the Bank of Montreal predict that the country’s GDP will increase at a 2.5% annualized rate in the first three months of 2025, up from 1.7%.

Speaking to reporters on Friday, Trudeau praised his government’s approach to program expenditure, claiming it fosters optimism and possibilities for families and the middle class.

“We’re focusing on Canadians. “Let the bankers worry about the economy,” Trudeau stated.

Related:

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

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Business

Forced Sale Google Chrome Could Fetch $20 Billion

Published

3 days ago

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2024-11-21

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Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

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Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

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Bitcoin Has Set a New Record And Is Approaching $100,000.

Published

4 days ago

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2024-11-21

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Bitcoin

(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

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NVIDIA’s Earnings: The Leader In AI Chips Demonstrates Relentless Growth.

 

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